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5 Stocks to Buy Now Trading Under $10 With Mammoth Upside Potential
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While most of Wall Street focuses on large-cap and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it is difficult to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level. This week we found five new stocks that could provide investors with some solid upside potential.
While more suited for aggressive investors, and with the number of new traders skyrocketing over the past year and making good ideas to trade even harder to find, these could prove exciting additions for traders looking for solid alpha potential. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This is a solid way for investors looking for value to play health care. Imac Holdings Inc. (NASDAQ: IMAC) provides orthopedic therapies through a chain of innovative medical advancements and care regeneration centers in the United States.
Its outpatient medical clinics provide regenerative, orthopedic and minimally invasive procedures and therapies to patients with sports injuries, back pain, knee pain, joint pain, ligament and tendon damage, and other related soft tissue conditions. As of March 26, 2020, the company owned or managed 14 outpatient clinics in Kentucky, Missouri, Tennessee and Illinois.
Last week Imac announced the acquisition of another chiropractic clinic, Willmitch Chiropractic in Tampa, Florida. Together with its recently announced acquisition of NCH Chiropractic in Orlando (scheduled to close at the end of this month), the clinics received more than 18,000 patient visits in 2020. Both clinics presently offer only chiropractic services, and Imac intends to add additional medical services (for instance, regenerative medicine and rehabilitation services) to the clinics.
Alliance Global has a $2.75 price target, but the Wall Street consensus target is higher at $3.75 a share. The stock has traded shy of $2 recently.
Investors looking for a low-price biotech play could have a big winner here. MEI Pharma Inc. (NASDAQ: MEIP) is a late-stage pharmaceutical company focused on the development of various therapies for the treatment of cancer. Its Zandelisib is an oral phosphatidylinositol 3-kinase delta inhibitor that is in a Phase 2 clinical trial for the treatment of patients with relapsed/refractory follicular lymphoma, as well as in a Phase 1b multi-arm trial to treat B-cell malignancies. Voruciclib is an oral cyclin-dependent kinase inhibitor that is in Phase 1b clinical trial for acute myeloid leukemia and B-cell malignancies.
MEI Pharma is also developing ME-344, a mitochondrial inhibitor targeting the oxidative phosphorylation complex, which is in a Phase 1 clinical trial for the treatment of human epidermal growth factor receptor 2 negative breast cancer. Its Pracinostat is an oral available histone deacetylase inhibitor that is in a Phase 2 clinical trial to treat patients with myelodysplastic syndrome.
The company has a license, development and commercialization agreement with Kyowa Kirin; a clinical collaboration with BeiGene; a license, development, manufacturing and commercialization agreement with Helsinn Healthcare; and license agreements with Presage Biosciences and CyDex Pharmaceuticals.
The Stifel price target is $9, which is lower than the consensus figure of $9.60. The stock traded near $3.50 recently.
This is a great way for investors to play the shipping sector. Safe Bulkers Inc. (NYSE: SB) provides marine dry bulk transportation services. It owns and operates dry bulk vessels for transporting bulk cargoes primarily coal, grain and iron ore.
As of March 13, 2020, the company had a fleet of 41 dry bulk vessels, having an average age of 9.5 years and an aggregate carrying capacity of 3,777,000 deadweight tons. Its fleet includes 14 Panamax class vessels, 10 Kamsarmax class vessels, 13 post- Panamax class vessels and four Capesize class vessels.
The $3 Stifel price target compares to the $1.90 consensus target. The share price rose above $2 last week.
This small-cap oilfield services play has some big upside potential. TETRA Technologies Inc. (NYSE: TTI) is a geographically diversified oil and gas services company engaged in the completion of fluids and associated products and services.
The company operates through the following segments. The Completion Fluids and Products division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. The Compression division offers compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Water and Flowback Services division provides onshore oil and gas operators with comprehensive water management services.
Evercore ISI has set a $3 price target. The consensus is the same. Shares traded at a 52-week high near $2.25 late last week.
This company has gone through numerous transformations over the past 20 years and is poised for potential strong growth. Zix Corp. (NASDAQ: ZIXI) provides email encryption, data loss prevention, threat protection and archiving for the secure exchange of email in the United States.
Zix’s Advanced Email Threat Protection is a cloud-based service that defends organizations from zero-day malware, ransomware, phishing, CEO fraud, W-2 phishing attacks, spam and viruses in email. Information Archive is a cloud-based email retention solution that enables user retrieval, compliance and e-discovery, while Email Encryption Service allows a user to send encrypted email to any email user anywhere and on any internet-enabled device. The company offers cloud-based cybersecurity solutions, e-signatures and secure file sharing solutions. It serves the health care, financial services, insurance and government sectors.
Stephens recently started coverage with an $11 price target, the same as the consensus target. The stock hit a year-to-date high above $9.35 on Friday.
These are five stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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